If the Minimum Wage Is Set Below the Equilibrium Market

question 43

Multiple Choice

If the minimum wage is set below the equilibrium market wage,

• A)it increases unemployment.
• B)it is effective and reduces unemployment.
• C)it equals the black market wage.
• D)it is not effective,because it is lower than firms are willing to pay for labor.
• E)None of the above are correct.

---

Definitions:

Retributivist

A theory of punishment that justifies penalizing wrongdoers on the basis that they deserve punishment commensurate with the harm they have caused.

General Deterrence

is a theory in criminology that suggests the prevention of criminal behavior through the threat of punishment, aiming to discourage others from committing similar offenses.

Punishing Innocent

The act of subjecting individuals who have not committed any wrongdoing to punishment.

Moral Justification

The process of providing a moral reason or rationale to support or defend an action or behavior.